Top 15 Airbnb Markets in South Dakota

Home to the iconic Black Hills, Mount Rushmore, and sweeping prairie landscapes, South Dakota is more than a road-trip stop—it’s a state with growing short-term rental (STR) potential. From college towns and state-capital corridors to lakeside retreats and national-park gateways, the Mount Rushmore State offers diverse opportunities for hosts and investors seeking steady cash flow and moderate entry costs.

What Is AirDNA’s Market Score?

Market Score is a proprietary metric that ranks how attractive a location is for short-term rental investment. Each score is calculated based on the following five metrics:

• Investability
• Rental Demand
• Revenue Growth
• Seasonality
• Regulation

Scores range from 0 to 100, with higher scores indicating stronger overall market health. In addition to an overall Market Score, each of the five metrics gets its own score on the same scale within the AirDNA app. This level of granularity is useful for Airbnb stakeholders interested in a particular aspect of market behavior.

Understanding Markets vs. Submarkets

This list includes a mix of the largest markets and submarkets, which are defined as:

• Markets refer to well-defined, often larger geographic areas like cities or metro regions.
• Submarkets are more granular locations, such as smaller towns, neighborhoods, or lake communities within those larger regions.

Including both allows investors to spot opportunities that may be overlooked when focusing solely on large-scale market data. A market with a mediocre score might contain submarkets with excellent performance.

Airbnb Market Overview in South Dakota

South Dakota’s STR landscape is anchored by well-known tourism magnets such as the Black Hills and Rapid City, but the map is dotted with high-yield small towns that cater to hunters, anglers, university parents, and road-trippers. Moderate property prices and low saturation in many communities leave ample room for newcomers, while statewide occupancy benefits from a long peak season that stretches from spring fishing to fall foliage and hunting.

Top 15 Airbnb Markets in South Dakota (Ranked by Market Score)

15. Chamberlain

Market Score: 15.32

Average Annual Revenue: $23,369

Nestled along the Missouri River, Chamberlain serves as a scenic overnight stop for I-90 travelers and anglers chasing trophy walleye. Low home prices and light competition create a low-barrier entry point for investors.

14. Yankton

Market Score: 22.25

Average Annual Revenue: $39,199

Bordering the vast Lewis & Clark Lake, Yankton pulls in boaters, campers, and history buffs. Strong summer demand and higher-than-average nightly rates offset a shorter shoulder season.

13. Mitchell

Market Score: 22.97

Average Annual Revenue: $21,780

Home of the famous Corn Palace, Mitchell benefits from steady road-trip traffic on I-90 and regional sporting events. Affordable single-family inventory makes cash-flow calculations pencil out quickly.

12. Platte

Market Score: 23.48

Average Annual Revenue: $22,051

This small Missouri-River community thrives on fishing tournaments and hunting seasons. Modest ADRs are balanced by minimal operating costs and loyal repeat guests.

11. Vermillion

Market Score: 25.77

Average Annual Revenue: $18,928

Home to the University of South Dakota, Vermillion enjoys consistent visitation from parents, alumni, and sports fans. Academic calendars provide predictable booking patterns that savvy hosts can optimize.

10. Bonesteel

Market Score: 28.36

Average Annual Revenue: $10,976

Bonesteel may be tiny, but its proximity to the scenic Niobrara and Missouri rivers draws avid hunters and anglers. For operators willing to manage a small portfolio, low buy-in costs can yield attractive percentage returns.

9. Rapid City

Market Score: 29.73

Average Annual Revenue: $36,136

As the gateway to Mount Rushmore and Badlands National Park, Rapid City enjoys robust summer demand and an expanding off-season events calendar. Competition is higher, but strong ADRs help maintain margins.

8. Black Hills

Market Score: 29.92

Average Annual Revenue: $51,620

The Black Hills region remains South Dakota’s tourism powerhouse, attracting hikers, bikers, and rally-goers. Cabins and larger homes perform best, benefiting from group travel and high nightly rates during peak months.

7. Webster

Market Score: 36.19

Average Annual Revenue: $30,663

Surrounded by glacial lakes, Webster draws anglers year-round, particularly for ice-fishing. Consistent occupancy and low acquisition costs make it a sleeper hit for STR portfolios.

6. Pierre

Market Score: 38.03

Average Annual Revenue: $42,439

South Dakota’s state capital hosts government travelers, fishing tournaments on Lake Oahe, and seasonal hunters. Diverse demand drivers smooth out seasonality and support higher-end listings.

5. Miller

Market Score: 41.99

Average Annual Revenue: $20,045

Miller benefits from agricultural events, regional business travel, and annual hunting seasons. With virtually no STR saturation, even one or two well-managed properties can dominate local bookings.

4. Lake Norden

Market Score: 42.34

Average Annual Revenue: $33,691

Known for its cluster of recreational lakes, Lake Norden delivers strong summer and ice-fishing traffic. Waterfront cabins catch premium ADRs, and year-round events at nearby cheese plants add business stays.

3. Hot Springs

Market Score: 54.49

Average Annual Revenue: $30,884

With natural warm-water pools and proximity to Wind Cave National Park, Hot Springs is an emerging wellness and adventure hub. Moderate competition and rising ADRs signal upside potential.

2. Aberdeen

Market Score: 66.87

Average Annual Revenue: $22,318

A regional economic center with a university, healthcare facilities, and corporate offices, Aberdeen enjoys a balanced mix of leisure and business travelers. Year-round demand steadies cash flow.

1. Sioux Falls

Market Score: 74.08

Average Annual Revenue: $28,313

South Dakota’s largest city leads the pack with its booming medical sector, vibrant downtown, and nonstop flight connections. Consistent occupancy, growing ADRs, and relatively landlord-friendly regulations make Sioux Falls the state’s most attractive STR market.

Should You Invest in South Dakota?

While South Dakota may fly under the radar compared to coastal juggernauts, the state offers a compelling mix of attainable home prices, low STR saturation, and diverse demand drivers—from national-park tourism and hunting seasons to university and government travel.

If you favor peak-season ADR spikes and scenic backdrops, the Black Hills, Rapid City, and Hot Springs warrant attention. Investors seeking smoother year-round cash flow might lean toward Sioux Falls, Aberdeen, or Pierre, where business and government travel bolster mid-week occupancy. For value hunters, submarkets such as Webster and Lake Norden provide high percentage returns with minimal upfront costs.

Factor in South Dakota’s generally favorable regulatory climate, business-friendly tax environment, and expanding tourism campaigns, and the Mount Rushmore State emerges as a quietly robust arena for short-term rental investment.